An increase in government spending will immediately shift
A. aggregate supply to the right.
B. aggregate demand to the right.
C. aggregate supply to the left.
D. aggregate demand to the left.
Answer: B
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An increase in the real interest rate will
A) most likely lower the reward to savings. B) most likely lower the cost of borrowing. C) most likely lower consumers' purchases of durable goods. D) cause consumers to spend more and save less.
Dynamic and static games have outcomes that
A) may be different. B) are always different. C) are not Nash equilibria. D) result from dominant strategies.
In the U.S. balance of payments, purchases of foreign assets by U.S. residents are tabulated as a:
a. unilateral transfer. b. capital outflow. c. current account outflow. d. capital inflow.
In a market, a distortion does not exist if
A. the social marginal benefit is less than the social marginal cost. B. the social marginal benefit is equal to the social marginal cost. C. the social marginal benefit is greater than the social marginal cost. D. the private marginal benefit is greater than the social marginal benefit.